The move comes as the Australian wine company has revealed plans to rebalance its US supply chain as demand has softened.
TWE, which is famous globally for wines including Penfolds and Lindemans, said that there was excess supply chain capacity, particularly with respect to vineyards, wineries and packaging, and elevated levels of inventory from recent vintages.
It said it was focused on accelerating the “improvement of future returns” for its Americas business.
After the review of its North American business, TWE said it would reduce its north coast vintage make sizes from this year, including by fallowing vineyards to lower grape intake and writing down inventory across the US. This write down would include inventory, predominantly bulk wine, which TWE expects to manage through sale into bulk wine markets and internal reclassification
As a result of these initiatives TWE said it expects to recognise an additional $558.4m (Aus) post-tax material item charge in its F26 results, relating to the non-cash write-down of US based assets and a further impairment of brands.
The company said that the operational and strategic review of the Americas remains ongoing, with TWE having appointed advisors to support the review of all available options across the Americas brand portfolio, operating model and asset base.
TWE’s Chief Executive Officer, Sam Fischer said: “As we announced in June, we are taking proactive and decisive action to align supply to a rigorous model of future demand against the backdrop of an evolving US wine market.
“Both our Ascent transformation program and strategic review of potential options for the future of our US business are progressing well. The underlying momentum in our business remains positive, with our key brands delivering depletions growth ahead of their categories, led by Penfolds, DAOU and Frank Family Vineyards, and we expect to report F26 EBITS ahead of the guidance we shared in June.”